Customer Petition Process for Revocation of Certificate

During the 2014 Legislative Session, the Florida Legislature enacted Senate Bill
272, which created
Section 367.072
, Florida Statutes (F.S.), Petition to revoke certificate
of authorization which went into effect July 1, 2014. The Commission adopted
Rule 25-30.091
, F.A.C., to implement the statutory requirements contained
in newly enacted law. The rule outlines the process through which customers of a
water utility may initiate revocation of an operating certificate of the water utility
regulated by the Commission. The rule provides forms for petitioners to use for
the process, and reflects the deadlines for all necessary processes.

Below is a summary of the actions customers, staff, and the utility must undertake
once the process begins.

Customers who intend to petition for revocation must file a letter of intent with
the Commission. Staff is required to notify the utility of the customers’ intent
to petition within 10 days after receipt of the notice. Customers may not petition
the commission to revoke a certificate if the utility is the subject of a rate proceeding.

Customers have 90 days to file the petition after receipt of staff’s instructions
by obtaining the signatures of at least 65 percent of the customer accounts of the
utility. Customers must state each issue that they have had with the quality of
water service provided, each time the issue was reported to the utility, and how
long the issue has existed. Primary and secondary water standards are determined
by the DEP.

If deadlines or the required percentage of signatories are not met, the statute
requires that the Commission dismiss the petition with prejudice and that the customers
may not file another petition for one year after the dismissal.

If the Commission determines that the issues identified in the petition do not
support a reasonable likelihood that the utility is failing to provide quality water
services, the Commission’s order dismissing the petition will be issued as a proposed
agency action.

If the Commission determines that a petition identifies issues that support a
reasonable likelihood that the utility is failing to provide quality water services,
Section 367.072(3)(a) and (b), F.S., prescribes the criteria the utility shall use
in preparing a response to the Commission to address the issues and to defend the
quality of its water service. The utility is also prohibited from filing a rate
case until the Commission has issued a final order addressing the issues identified
in the petition.

Last, Section 367.072(5) (a)-(c), F.S., requires the Commission to take one of three
actions based on its evaluation of the issues, 1) Dismiss the petition; 2) Require
the utility to take the necessary steps to correct the quality of water service
issues identified in the petition; 3) revoke the utility’s certificate of authorization,
in which case a receiver must be appointed.

For additional information please contact the FPSC’s Division of Engineering at
(850) 413-6910.